House OKs Boost for Renewable Energy
By H. JOSEF HEBERT 08.04.07, 6:02 PM ET
WASHINGTON -
The House approved incentives for renewable energy and conservation Saturday, and edged closer to passing nearly $16 billion in taxes on oil companies.
Republican opponents said the legislation ignores the need to produce more domestic oil, natural gas and coal. One GOP lawmaker bemoaned "the pure venom ... against the oil and gas industry."
The House approved the energy measures, including a requirement for electric utilities to use more renewable energy to generate power, by a vote of 241-172. Lawmakers later were to consider a companion tax package, totaling nearly $16 billion, that targets the major oil companies.
"We are turning to the future," said House Speaker Nancy Pelosi.
On one of the most contentious and heavily lobbied issues, the House voted to require investor-owned electric utilities nationwide to generate at least 15 percent of their electricity from renewable energy sources such as wind or biofuels.
The utilities and business interests had argued aggressively against the federal renewables mandate, saying it would raise electricity prices in regions of the country that do not have abundant wind energy. But environmentalists argued the requirement will spur investments in renewable fuels and help address global warming as utilities use less coal.
"This will save consumers money," said Rep. Tom Udall, D-N.M., the provision's co-sponsor, maintaining utilities will have to use less high-priced natural gas. He noted that half the states already have a renewable energy mandate for utilities, and if utilities can't find enough renewable they can meet part of the requirement through power conservation measures.
The bill also calls for more stringent energy efficiency standards for appliances and lighting and incentives for building more energy-efficient "green" buildings. It would authorize special bonds for cities and counties to reduce energy demand.
Pelosi, D-Calif., said it was essential to commit to renewable energy while reducing reliance on fossil fuels. Doing so, she said, will help address global warming and make the country more energy-independent.
"It's about our children, about our future, the world in which they live," Pelosi said.
She had pledged to have the House pass energy legislation before lawmakers depart this weekend for a monthlong vacation.
Democrats avoided a nasty fight by ignoring - at least for the time being - calls for automakers to make vehicles more fuel-efficient. Cars, sport utility vehicles and small trucks use most of the country's oil and produce almost one-third of the carbon dioxide emissions linked to global warming.
That issue, as well as whether to require huge increases in the use of corn-based ethanol as a substitute for gasoline, were left to be thrashed out when the House bill is merged with energy legislation the Senate passed in June.
Republicans said the House bill did nothing to increase domestic oil and natural gas production or take further advantage of coal, the country's most abundant domestic energy resource.
"There's a war going on against energy from fossil fuels," said Rep. Ralph Hall, R-Texas. "I can't understand the pure venom felt against the oil and gas industry."
Rep. Joe Barton, R-Texas, said the bill was "a political exercise" to promote "pet projects, ... pet ideas." He predicted it "isn't going anywhere" because President Bush will veto it if it gets to his desk.
The White House said the legislation makes "no serious attempts to increase our energy security or address high energy costs" and would harm domestic oil and gas production. The administration's statement criticized the singling out of oil companies for tax increases.
A separate tax measure, expected to be voted on later in the evening, would end two sizable tax breaks for major oil companies. One was aimed at promoting domestic manufacturing; the other pertained to income from foreign oil production.
The tax measure also would provide an array of loan guarantees, federal grants and tax breaks for alternative energy programs. They include building biomass factories, research into making ethanol from wood chips and prairie grasses and producing better batteries for hybrid gas-electric automobiles.
The legislation would end a tax break for buying large SUVs, known as the "Hummer tax loophole" because it allows people who buy some of the most expensive SUVs to write off much of the cost.
The proposal also provides tax incentives for companies to produce flex-fuel vehicles that can run on 85 percent ethanol and for gas station operators to install E-85 pumps.
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